Reddit stock soars, three key drivers behind RDDT's all-time high
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Reddit's stock (NYSE: RDDT) has soared to new heights less than a year after going public, driven by impressive third-quarter results and a positive outlook. The platform reported its first profitable quarter with a significant revenue increase, reflecting its strong monetization strategy. Additionally, a surge in daily active users and an optimistic forecast for Q4 have further fueled investor confidence in Reddit's growth potential.
Reddit stock soars: three key drivers behind rddt's all-time high Less than a year since going public, Reddit’s stock (NYSE: RDDT) has reached unprecedented heights, fueled by impressive third-quarter results and a positive outlook. Here are the main reasons behind RDDT’s current rally.
Record-Breaking Q3 Performance
Reddit reported its first profitable quarter, posting total revenue of $348.4 million, a 68% increase year-over-year. Advertising revenue accounted for $315.1 million, reflecting the platform's growing appeal to advertisers. Net income reached $29.9 million, a sharp turnaround from the $7.4 million loss the previous year, and earnings per share hit 16 cents, beating analysts’ expectations of 7 cents. These results show Reddit’s capability to monetize its vast user base effectively.
Surge in Daily Active Users
Reddit’s DAUq metric—its unique daily users—showed robust growth, reaching 97.2 million globally, up 47% from the previous year. Notably, U.S. DAUqs grew by 51%, while international DAUqs increased by 44%. This rise in engagement, particularly from user-generated content, reinforces Reddit’s competitive position among social platforms and has provided a strong basis for revenue growth.
Optimistic Q4 Forecast
Looking forward, Reddit projects Q4 revenue between $385 million and $400 million and an adjusted EBITDA of $110 million to $125 million. These estimates exceeded analyst forecasts and underscored Reddit’s confidence in its growth trajectory. Since its IPO in March at $47 per share, RDDT’s value has doubled, rewarding investors who bet on Reddit’s continued rise.
Reddit stock soars: three key drivers behind rddt's all-time high Less than a year since going public, Reddit’s stock (NYSE: RDDT) has reached unprecedented heights, fueled by impressive third-quarter results and a positive outlook. Here are the main reasons behind RDDT’s current rally.
Record-Breaking Q3 Performance
Reddit reported its first profitable quarter, posting total revenue of $348.4 million, a 68% increase year-over-year. Advertising revenue accounted for $315.1 million, reflecting the platform's growing appeal to advertisers. Net income reached $29.9 million, a sharp turnaround from the $7.4 million loss the previous year, and earnings per share hit 16 cents, beating analysts’ expectations of 7 cents. These results show Reddit’s capability to monetize its vast user base effectively.
Surge in Daily Active Users
Reddit’s DAUq metric—its unique daily users—showed robust growth, reaching 97.2 million globally, up 47% from the previous year. Notably, U.S. DAUqs grew by 51%, while international DAUqs increased by 44%. This rise in engagement, particularly from user-generated content, reinforces Reddit’s competitive position among social platforms and has provided a strong basis for revenue growth.
Optimistic Q4 Forecast
Looking forward, Reddit projects Q4 revenue between $385 million and $400 million and an adjusted EBITDA of $110 million to $125 million. These estimates exceeded analyst forecasts and underscored Reddit’s confidence in its growth trajectory. Since its IPO in March at $47 per share, RDDT’s value has doubled, rewarding investors who bet on Reddit’s continued rise.